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    Kraft SWOT Analysis

    Number of Pages: 6


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    A 6 page paper providing a SWOT analysis of Kraft and discussion of its competitors and distinctive competency as a part of a larger work creating and marketing a "Lunchable" product for seniors. Kraft is an old company with a great deal of expertise. Though it has been slow to address demographic changes, once it did begin responding to those changes it did so with a great deal of success. Bibliography lists 8 sources.

    Name of Research Paper File: CC6_KSmktgKraft.rtf

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    company in the US (and second largest in the world), Kraft has a reputation for being a laggard in innovation and changing strategic direction. The company is striving to  change that image and fact, restructuring its manufacturing processes and methods (Miller, 2006) and altering existing products to make them more healthy (Kraft, Nestle, ConAgra, 2006). SWOT Analysis Strengths *  "Financial strength and business scale" (Kraft Foods, Inc. SWOT Analysis, 2005; p. 5). Kraft operates in more than 150 countries and recently announced it would increase its efforts in  China (Kraft Scales up Investment in China, 2006). "Kraft has strong economies of scale in manufacturing and marketing its products, and has the financial strength to combat its competitors"  (Kraft Foods, Inc. SWOT Analysis, 2005; p. 5). * Brand diversity. Kraft maintains five core product areas: snacks, beverages, cheese, grocery and convenience foods (Kraft Foods, Inc. SWOT Analysis,  2005). It is better able to deal with fluctuations in one area and less dependent on maintaining consistently positive business results from one type of product. * Distribution.  The company has decades of experience in distribution on a national - and now international - scale. It advertises heavily to both regional and national audiences (Kraft Foods, Inc.  SWOT Analysis, 2005). * Strong R&D focus. Kraft continually seeks out new product ideas, but neither is its R&D limited to prospective products. Kraft and its US competitors  sought means of eliminating trans fat from products without altering taste. Oreo cookies were targeted early on by food activists; Kraft has introduced a zero trans fat version for  2006 (Kraft, Nestle, ConAgra, 2006). Weaknesses * Declining operating income. Though Krafts gross revenues have increased in nearly all segments, net income has declined in nearly half of those 

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